UPDATE: Canaccord Genuity Downgrades PayPal (PYPL) to Hold
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) in Advanced Talks to Acquire B/E Aerospace (BEAV) - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(Updated - September 19, 2016 11:05 AM EDT)
Canaccord Genuity downgraded PayPal (NASDAQ: PYPL) from Buy to Hold with a price target of $40.00 (from $45.00). Analyst Michael Graham thinks shares reflect TPV strength.
The analyst explained, "After a sharp decline following news of the Visa deal in July, PayPal's stock is up ~9% off of lows. We are optimistic regarding TPV growth in the near term, but we believe the factors driving this (One Touch, Venmo) are well understood and largely reflected in estimates. Meanwhile, higher funding mix-driven transaction expenses stemming from the V and MA deals are likely to pressure margins and temper EPS growth modestly. Longer term, we see a balance of factors (offline volume potential, competition from Apple & Android Pay) that should keep TPV growth on a path of gentle deceleration. With the multiple now at a less attractive level and the possibility of pressure on EPS estimates from 2017-2020, we believe shares are fully valued at current levels; therefore, we downgrade to HOLD."
Shares of PayPal closed at $40.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- Philip Morris Intl (PM) PT Raised to $101 at Jefferies
- RBC Capital Raises Price Target on Benchmark Electronics (BHE) Following In-Line 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesCanaccord Genuity
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!